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Are the Boom Days for Hong Kong Property Over?

CNBC
Are the Boom Days for Hong Kong Property Over? - Hong Kong - property market


Hong Kong’s residential property market, which has seen dramatic price gains over the past decade because supply has not kept up with demand, is set for a slowdown as the new administration comes good on its pledge to increase land supply for housing, says an industry expert.



“With a pro-supply government and hence likely rising supply, and more proactive policies against price rises, we expect residential price growth to halve at best,” Nicole Wong, Regional Head of Property Research at CLSA told CNBC.

In his inaugural speech on July 1, Chief Executive C.Y. Leung reiterated his pledge to increase land supply to ensure affordability for middle-income buyers. The government’s target is to help private developers release for sale 20,000 units every year – almost double of the 9,500 units made available in 2011.

Residential property prices, which have surged 66 percent between 2000 and 2012 at an annual rate of 5.2 percent, will slow to a 2.6 percent growth rate per annum between 2010 and 2020, according to Wong.


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